US safeguards officially over

The US government has officially lifted the Section 201 safeguards on steel imports, saying sector restructuring has been achieved, according to a statement released by President George Bush on Thursday. "I took action to give the industry a chance to adjust to the surge in foreign imports and to give relief to the workers and communities that depend on steel for their jobs and livelihoods. These safeguard measures have now achieved their purpose, and as a result of changed economic circumstances it is time to lift them," said Bush. The controversial quotas and tariffs on steel imports reached as high as 30% when they were imposed in March 2002, and were due to stay in place for three years. The ending of the safeguards comes less than a month after the World Trade Organization ruled that the measures violated global trade laws, and just before the European Union planned to launch sanctions against US$2.2bn in US products. Strong prices for steel on the international market has also helped US industry. "The US steel industry wisely used the 21 months of breathing space we provided to consolidate and restructure. The industry made progress increasing productivity, lowering production costs, and making America more competitive with foreign steel producers," Bush said. While the safeguards have been removed, numerous antidumping duties continue to restrict foreign steelmakers' access to the US market. "We will continue our steel import licensing and monitoring program so that my Administration can quickly respond to future import surges that could unfairly damage the industry," said Bush.